Dangerous Liaisons: China's Indirect Investment Structures and the Shaky Foundations of "China Plays" on the Global Capital Markets

Nicholas C. Howson, University of Michigan Law School

Date: 09/12/2012
Duration: 1:00
Description: Nicholas C. Howson, visiting professor from the University of Michigan, analyzed the rise of “Variable Interest Entities,” an indirect method of investing in Chinese companies designed to circumvent Chinese government restrictions on foreign investment. This investment form involves a foreign holding company creating a wholly owned subsidiary in China to effectuate the foreign company’s investment in a Chinese company. The investment form, however, has proven very risky for American investors.
Sponsor(s): Center for Chinese Studies Sponsor: Berkeley Center for Law, Business and the Economy